Commercial LVR & Security Shortfall Calculator
Commercial lenders apply different maximum LVRs by asset type, and often take multiple properties as security. This calculator works out the blended lending value across your security pool and whether it covers the loan you need.
Your details
Requirement
Security 1
Security 2
| Loan required | $2,500,000 |
| Total security value | $3,500,000 |
| Blended maximum LVR | 74.3% |
| Total lending value | $2,600,000 |
| Less existing debt on securities | $400,000 |
| Available to borrow | $2,200,000 |
| Resulting LVR on total security | 82.9% |
| Additional security required | $403,846 |
| Asset type | Value | Max LVR | Lending value | Existing debt | Available |
|---|---|---|---|---|---|
| Commercial | $2,000,000 | 70% | $1,400,000 | $0 | $1,400,000 |
| Residential | $1,500,000 | 80% | $1,200,000 | $400,000 | $800,000 |
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Frequently asked questions
Why is commercial LVR lower than residential?
Commercial assets are less liquid, values are more volatile and they depend on tenant covenants. Lenders hold a larger equity buffer as a result, typically capping at 70% and lower for specialised assets.
What is a security shortfall?
When the lending value of your security pool is less than the loan you need. The options are to add security, reduce the loan, or find a lender with a higher LVR appetite - usually at a higher rate.
General advice warning: This calculator provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice.
Results are estimates based on the inputs and assumptions shown. Any interest rate used is an example and is not an offer of credit. Speak to a licensed credit representative before acting on these figures.